Table of Content
(I) List of Figures and Tables 2
1. Introduction 3
1.1 Background and Purpose 3
1.2 Aim 3
1.3 Methodology 3
2. Authors Process Steps 4
3. Description of the Concept Finding for ICA 5
3.1 Service Maintenance 6
3.2 Improve Service Performance 7
3.3 Service Innovation 8
3.4 Description of the Innovations used for a New ICA Concept 9
3.4.1 Improvement of the Package 9
3.4.2 Customer Roles and Interaction 9
4. Strategy Description for ICA 11
4.1 The Product Journey 11
4.2 Customer Involvement 12
4.3 Summarization of the Strategy 14
5. Conclusion 15
(II) References 16
The challenge which many companies have to face nowadays is to stay competitive at the market. According to Gustafsson and Johnson (2003), New Service Development can be used to achieve a competitive advantage and compete through services. Thereby, the term of New Service Development (abbreviated as NSD) gets into focus of companies to emphasize their own offerings of those from their competitors. The question remains what steps are involved in the process of NSD and how companies can achieve a successful service development. One major influence within NSD is the customer and their knowledge provided for firms. Customer involvement in the different service development steps of a company belongs nowadays to the day-to-day business of many companies and provide customer focused products remains a crucial part of this. (Alam, 2006)
Within this report the change process of a supermarket (ICA) from a normal good-dominant grocery store to a more service-dominant business is lined out. The dy-namic process of NSD is described via own product experiences combined with NSD theories. The last step is the strategy development for ICA. The strategy aims to achieve a competitive advantage and ensure the company growth.
Table of Content
1. Introduction
1.1 Background and Purpose
1.2 Aim
1.3 Methodology
2. Authors Process Steps
3. Description of the Concept Finding for ICA
3.1 Service Maintenance
3.2 Improve Service Performance
3.3 Service Innovation
3.4 Description of the Innovations used for a New ICA Concept
3.4.1 Improvement of the Package
3.4.2 Customer Roles and Interaction
4. Strategy Description for ICA
4.1 The Product Journey
4.2 Customer Involvement
4.3 Summarization of the Strategy
5. Conclusion
Objectives and Core Themes
This report explores the transformation of the Swedish supermarket chain ICA from a traditional, product-dominant grocery retailer into a more service-oriented business model. The primary aim is to analyze the New Service Development (NSD) process through a specific product case study and subsequently develop a customer-focused strategy that fosters loyalty and competitive advantage.
- Application of New Service Development (NSD) theories to retail products.
- Methods of customer involvement and co-creation in service design.
- Strategic shift towards interactive customer experiences ("Product Journey").
- Enhancing competitive advantage through service-dominant logic.
Excerpt from the Book
3.1 Service Maintenance
Within the service maintenance process Gustafsson and Johnson (2003) are pointing out the major importance in removing the things that have gone wrong.
Keeping this in mind for the chosen ICA product, the defects of the product have to be found and solved to enhance the value-in-use for the customer. In the following, the found product defects and solutions will be outlined regarding the customers value-in-use process.
The opening of the package is not possible without an additional tool like a scissor or knife. The transportation of ICAs fruit crème is also not possible, because a lid is missing and the only possibility is to store it standing in the fridge. These defects can be solved via a lid at the package, which would easier the storage, transportation and opening and the value creation process will be enhanced. Other defects found regarding the descriptions at the package. All descriptions are in Swedish, for foreign buyers it is impossible to read it and gain knowledge about the usage, storage etc. Also the pictures on the package are just showing the different kinds of fruits but do not give any information about the content. These defects could lead to a wrong usage of the product or even prevent customers from buying it. (Gustafsson & Johnson, 2003)
Summary of Chapters
1. Introduction: Presents the background of New Service Development and outlines the aim of analyzing ICA's transition toward a service-dominant business model.
2. Authors Process Steps: Details the practical approach, including product selection and the use of focus groups for idea generation based on product experience.
3. Description of the Concept Finding for ICA: Explains the dynamic process of identifying service improvements and innovations using the "Hierarchy of Service Development" framework.
4. Strategy Description for ICA: Introduces the "Product Journey" strategy, focusing on interactive customer involvement through cooking-videos and shared recipes.
5. Conclusion: Summarizes the findings, emphasizing the importance of linking theory with practical application for successful business strategy development.
Key Keywords
New Service Development, NSD, ICA, Service-Dominant logic, Customer involvement, Value co-creation, Product Journey, Competitive advantage, Service innovation, Quality lifecycle, Customer loyalty, Retail strategy, Idea generation, Food retail, Customer experience.
Frequently Asked Questions
What is the core focus of this report?
The report focuses on how a traditional grocery retailer, ICA, can transition into a service-dominant business by applying New Service Development theories to its product offerings.
What are the primary themes discussed?
Central themes include product design improvement, the role of the customer as a co-creator, service innovation processes, and the strategic implementation of interactive digital platforms.
What is the main objective of the research?
The objective is to illustrate the New Service Development process using an ICA private-label product and to develop a customer-focused strategy to improve overall brand value and loyalty.
Which scientific methodology is employed?
The authors utilize a literature-based analysis, primarily drawing on Gustafsson and Johnson's "Competing in a Service Economy," combined with qualitative data from focus groups and direct product experience.
What does the main body cover?
The main body covers the identification of product defects, the theoretical frameworks for service innovation, and the design of the "Product Journey" strategy.
Which keywords define this work?
Key terms include New Service Development, Value co-creation, Customer involvement, and Service-Dominant logic.
How is the "Product Journey" strategy implemented?
It is implemented by encouraging customers to produce and share cooking-movies, which are then featured on the ICA homepage and in-store, creating an interactive, service-oriented experience.
Why is customer involvement considered crucial by the authors?
The authors argue that customers act as catalysts in redefining a company's mind-set, providing essential insights that the firm cannot obtain alone, thereby ensuring the strategy remains relevant and customer-focused.
- Arbeit zitieren
- Doreen Kupke (Autor:in), 2012, New Service Development: A Case Study for the Swedish Supermarket Chain ICA , München, GRIN Verlag, https://www.hausarbeiten.de/document/210446
